SBS$30.51
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Powered by LiveAIOverall Analysis
BuySABESP exhibits strong fundamental performance and a decent dividend yield, with generally positive technical indicators across shorter timeframes. The company operates in a stable, essential service sector. However, recent performance shows a decline, and longer-term technicals indicate a bearish trend. Further research into the upcoming earnings and any recent regulatory changes would be beneficial.
Thematic
SABESP operates in the essential utilities sector, providing water and sanitation services in São Paulo State, Brazil. This offers a degree of stability and resilience. While the core business is essential, the sector may not have the high growth potential of technology or emerging industries. ESG considerations are relevant in the utilities sector.
Fundamental
SABESP demonstrates strong profitability and a robust balance sheet, with substantial net income and a healthy net profit margin. The company generates significant free cash flow, though recent debt levels have increased. The valuation metrics, such as P/E and P/S, are quite low, suggesting potential undervaluation relative to its earnings and revenue.
Technical
SABESP's stock shows mixed technical signals. While shorter-term indicators (1m, 5m, 15m, 30m, 1h, 2h) suggest a potential 'Buy' or 'Neutral' sentiment with some moving averages indicating upward momentum, longer-term charts (4h, 1d) show a predominantly 'Sell' signal with most moving averages and oscillators suggesting downward pressure. The RSI is generally in neutral territory across most timeframes, except for some overbought readings on shorter intervals.
| Factor | Score |
|---|---|
| Utilities Sector Stability | 75 |
| Emerging Market Exposure | 50 |
| ESG & Sustainability Focus | 70 |
| Infrastructure Investment | 60 |
| Regulatory Environment | 40 |
| Factor | Score |
|---|---|
| Valuation | 98 |
| Valuation | 95 |
| Profitability | 92 |
| Growth | 88 |
| Balance Sheet Health | 60 |
| Cash Flow | 85 |
| Dividends | 20 |
| Factor | Score |
|---|---|
| Trend Analysis (Short-term) | 65 |
| Trend Analysis (Long-term) | 40 |
| Momentum | 45 |
| Momentum | 75 |
| Volume Confirmation | 70 |
| Support & Resistance | 60 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Attractive Valuation Metrics
The P/E ratio (TTM) is 1.6 and the P/S ratio (TTM) is 0.5, indicating potentially attractive valuation relative to earnings and sales compared to historical performance.
Strong Earnings Growth (2024)
Reported a Net Income of 9.58 billion in 2024 on Revenue of 36.15 billion, resulting in a Net Margin of 26.5%, showing significant profitability growth.
Bearish Points (6)
Increasing Debt Burden
Total debt has increased from 17.72 billion in Q4 2021 to 25.26 billion in Q4 2024. While free cash flow has also increased, the rising debt levels warrant monitoring.
Margin Fluctuation and Declines
While 2024 showed strong net margins (26.5%), Q4 2024 net margin was 15.7%, and Q2 2024 showed an unusually high 204.1% margin, suggesting potential volatility or one-off events impacting profitability reporting.
Calendar
May 2025
2
Ex-Dividend Date
May 2025
30
Next Dividend Date
August 2025
12
Next Earnings Date
H: $0.39
A: $0.39
L: $0.39
H: 6.02B
A: 5.73B
L: 5.45B
Profile
Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services to residential, commercial, and industrial private customers, as well as public. As of December 31, 2023, it provided water services through 10.3 million water connections; and sewage services through 8.8 million sewage connections in 376 municipalities of the São Paulo State. The company was founded in 1954 and is headquartered in São Paulo, Brazil.
Seasonals
Price Target
22.18 USD
The 39 analysts offering 1 year price forecasts for SBS have a max estimate of 23.00 and a min estimate of 20.34.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
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